There are numerous problems with Rent To Own Homes. Apart from it being the worst case scenarios,
it is a very costly program, full of market scams, risk, pitfalls, deception, greed to name a few.
Below are 5 most common problems with Rent To Buy House explained for you to make a profound decision.
1. Down Payment Security Issues: Landlord holds your initial deposit, extra payments per month.
If anything goes wrong you may loose all your amount.
2. Mortgage Issues: You may not qualify for a mortgage.
It could be due to change in your situation, interest rates, property appraised value etc.
3. Market Value Issues: Property Value may be well below Option Price value.
You will have to come up with additional amounts to close the property.
4. Credit Repair Issues: Your credit may not get repaired in time to procure a mortgage.
5. Landlord Issues: Seller / Landlord my run into financial problems, bankruptcy, power of sale / foreclosure issues.
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The information provided herein must only be used by consumers that have a bona fide interest in the purchase, sale or lease of real estate and may not be used for any commercial purpose or any other purpose.
Information is deemed reliable but is not guaranteed accurate by TREB.
Toronto Real Estate Board - IDX Last Updated: 8/23/2019 8:36:26 AM